MASKargo sees 25% growth !! MAS Share up for 25%

MASKargo seem will be catalyst for MAS stock.
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TOULOUSE: Malaysia Airlines Cargo Sdn Bhd (MASKargo) expects its revenue to grow by about RM200mil or 25% for the financial year ending Dec 31, 2012 (FY12).
“We have plans to grow by 25% in terms of revenue via new routes and higher capacity,” managing director Shahari Sulaiman said after taking delivery of MASKargo's first of its four A330-200F from Airbus on Thursday.
MASKargo is expected to receive its second A330-200F in November and another two aircraft next year.

Shahari: MASKargo’s main priority now is to strengthen its order book and operations.

 

Shahari said the growth would be contributed mainly by the new aircraft, which would enable it to operate more efficiently.
He explained that the new A330-200F, which had a maximum capacity of 70 tonnes, would make money if it was filled with 55 tonnes per flight. Its existing 747-400F, which has a capacity of 110 tonnes, would require at least 85 tonnes per flight to make money.
Shahari also said that MASKargo was “on target” to exceed RM2bil in revenue this year. It recorded revenue of RM2.4bil in financial year 2010.
On the possibility of MASKargo being listed, Shahari said this was not its main priority at the moment as it wanted to strengthen its order book and operations.
MASKargo intends to expand both its network and capacity with the new freighters. The four A330 freighters would complement its two 747-400F freighters in the current fleet, Shahari said.
“The airline industry experienced a 35% increase in fuel price over the last year, prompting us to cut the capacity on our leased 747-200F freighter network.
“The A330 freighters provide us with an opportunity to grow our capacity as we are able to serve more markets,” he said.
This also marks the first time that MASKargo is parking its new aircraft in its balance sheet.
Shahari said the new aircraft was just like any other investment that the company had made in the past in IT system, talents and ground-handling capacity.
“The A330-200F freighter has a book value of more than US$200mil each at 2011 price. Owning these planes strengthens our balance sheet and allows us to better manage our operating expenses.”
MASKargo is phasing out its leased 747-200F classic freighters by the year-end.

Source: The Star